With the coin’s indecisive price action, the conversation has been about when the Bitcoin price will return to its all-time high. Interestingly, the latest on-chain data shows that investors are becoming increasingly confident in the long-term promise of the flagship cryptocurrency.
Bitcoin Exchange Inflow/Outflow Ratio Below 1: On-Chain Analyst
In a July 5 post on the X platform, an on-chain analyst with the pseudonym Darkfost revealed that Bitcoin has continued to flow out of centralized exchanges over the past few months. The online crypto pundit mentioned that this trend reflects the growing confidence of investors in the long term.
This on-chain observation is based on the Bitcoin Exchange Inflow/Outflow Ratio 30DMA, a metric that measures the volume of BTC flowing in and out of centralized exchanges over a period of 30 days. A high ratio (>1) indicates more inflows than outflows into exchanges, signaling increased selling pressure for the premier cryptocurrency.
On the other hand, a low ratio (strong and sustained demand on the spot market.
The on-chain analyst said:
As of today, demand remains present as outflows continue to dominate, with a growing number of long-term holders stepping in.
Ultimately, Darkfost believes that the confidence being shown in Bitcoin’s long-term promise is expected, considering the growing adoption by major corporations and governments, most notably in the United States. “BTC is gradually evolving into a store of value, increasingly used to strengthen treasury strategies,” the crypto analyst added.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $108,103, reflecting a mere 0.3% increase in the past 24 hours.
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Author: coinmaker